India's ecommerce giants such as Amazon, Flipkart, Myntra and ShopClues have conveyed to the finance ministry and GST Council that they will have a tough time with compliances if they have to register in individual states.

A survey of about 1,000 retailers, wholesalers and manufacturers showed that 68% of businesses had limited or no GST-readiness, 18% had a basic understanding, while only 14% were working towards GST adoption.

"Customers can do day-to-day transactions using prepaid wallets. Small merchants will be able to receive digital currency without deploying physical POS terminals or other infrastructure," said Naveen Surya, chairman of the Payment Council of India and Managing Director of ItzCash.